China has announced plans to permit wholly-owned foreign hospitals in eight major cities and the island province of Hainan, according to a statement released by the Ministry of Commerce. This move is part of a broader strategy to enhance the healthcare sector and attract foreign investment.
The cities included in this initiative are Shenzhen, Beijing, Tianjin, Shanghai, Guangzhou, Nanjing, Suzhou, and Fuzhou. Notably, the new foreign hospitals will be restricted from specializing in traditional Chinese medicine.
Shenzhen’s New Frontier United Family Hospital, an American-owned facility that began operations in 2022, serves as a recent example of foreign investment in China’s healthcare sector. The Ministry of Commerce’s statement highlighted that further details on the specific conditions, requirements, and procedures for establishing such hospitals will be provided later, in collaboration with the National Health Commission and the National Medical Products Administration.
This policy shift aims to bolster the opening-up of the healthcare sector, foster investment, and improve medical services to better meet public needs. Additionally, foreign-invested enterprises will be permitted to research and develop technologies related to human stem cells, gene diagnosis, and treatment within China’s pilot free trade zones in Beijing, Shanghai, Guangdong, and the Hainan Free Trade Port. These enterprises can also apply for market registration and mass production licenses, with approved products being available nationwide.
The statement emphasized the importance of improving services for foreign enterprises engaging in these new programs and urged government departments to enhance coordination and oversight to manage potential risks associated with these advanced technologies.